SMART Alpha

What is SMART Alpha Bond?

Market Price Exposure Risk Mitigation using tranched volatility derivatives.

The SMART Alpha bonds will not be structured via traditional yield tranches but instead with various levels of market price exposure, which we will call risk ramps. The idea is that every bucket or tranche of price exposure does not need to be flat across the entire risk curve, meaning the first $100 of price exposure does not need to deserve the same upside and downside volatility. This is similar to having fractional ownership but with different risk/reward for the fractions.

Read more in our Whitepaper and on the website.